A faction of Anbesa Bank shareholders, collectively holding roughly 35 percent of the institution's paid-up capital, has petitioned National Bank of Ethiopia (NBE) Governor Eyob Tekalign for an emergency meeting. This move follows the regulator’s decision to invalidate the election of the bank’s board of directors, as recorded in the minutes of its 21st General Assembly.
The NBE issued a directive on June 19 rescinding a June 8 confirmation that had previously validated the bank’s October 2024 assembly proceedings. Although the central bank maintained its approval of other agenda items—most notably the bank’s capital expansion—it explicitly ordered that the board election results be struck from the official record. Following the rejection of an appeal filed by the bank’s board on July 1, the NBE has mandated that the institution convene a new general assembly to facilitate a fresh election process.
The conflict is reportedly rooted in internal friction over the bank’s credit strategies, specifically regarding exposure to borrowers in the Tigray region. Insiders suggest that the bank is managing approximately 12 billion birr in non-performing loans, a significant portion of which is tied to entities previously associated with the EFFORT conglomerate. The incumbent board has reportedly faced pushback for its refusal to grant further credit or foreign exchange allocations to these high-debt borrowers, citing a commitment to risk management and banking regulations.
In their request to the Governor, the concerned shareholders suggest that the regulator may have been provided with an inaccurate account of internal board dynamics. They contend that the current board is acting in the interest of regulatory compliance and financial health, whereas opposing factions are allegedly maneuvering to install directors who would be more amenable to extending credit to the indebted parties.
While the governance standoff continues, the NBE has verified the bank’s successful capital mobilization. Anbesa Bank has surpassed the six billion birr mark in paid-up capital, effectively complying with the regulatory threshold of five billion birr required for all commercial banks by June 30, 2026.
Meanwhile, Board Chairman Alem Asfaw has also formally requested a meeting with Governor Eyob Tekalign to articulate the board’s perspective and obtain further guidance regarding the NBE’s regulatory stance.
